Sharing the country’s conditions  and prospects of Construction  Market and the Construction  Information Use

Introduction About the Philippines

Philippine Road Network

‐

Current Road Network

‐

Current Investments in the Infrastructure Sector

‐

Proposed Public Investments on Infrastructure CY 2011‐2016

DPWH as the Engineering and Construction Arm of the Government‐

Organizational Structure

‐

Communication Network

‐

Current Status

‐

Proposed Connections

‐

Reforms through Technology

The Country’s Procurement System

Manila

Narita

At a glance . . . . THE PHILIPPINES

R-I

R-III

CAR

NCR

R-II

R-VI

R-IVA

R-V

R-VIII

R-VII

R-IX R-XI

R-IVB

R-XII

R-X

ARMM

R-XIII

LegendRoad Classification

North-South BackboneEast-West LateralOther Road of Strategic ImportanceSecondary National Road

Overall road network as of December 2008 : 205,778 km Overall road network as of December 2008 : 205,778 km

Road Density : 0.685 km Per square km. of land area Road Density : 0.685 km Per square km. of land area

Overall paved road ratio: low level of 0.25 (due to huge inventoOverall paved road ratio: low level of 0.25 (due to huge inventory ry of of ‘‘barangay roadsbarangay roads’’ or farm to village roadsor farm to village roads))

CURRENT ROAD NETWORK SYSTEM

FY 2010 CAPITAL OUTLAYS BUDGETBY MODE OF FINANCING

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

TOTAL CAPITAL OUTLAYS - P 116.760 B

P 13.432B (11.50%)

FOREIGN-ASSISTED PROJECTS

P 103.328B (88.50%)

LOCALLY-FUNDED PROJECTS

GOP COUNTERPART

P 5.170 B(4.43%)

FOREIGN COMPONENT

P 8.263 B(7.08%)

9

TOTAL INVESTMENTS FOR FAPsFY 2004 – FY 2010 (By Financing)

TOTAL JICA WB ADB UK AUSTRIAN KUWAIT KEDCF SFD

202,854.76 114,146.00 33,022.18 24,310.55 15,482.00 6,900.83 2,972.11 3,435.39 2,585.70(%) 56.27% 16.28% 11.98% 7.63 3.40 1.47 1.70 1.27

JICA, 56.27%

SFD, 1.27%

KEDCF, 1.70%

KUWAIT, 1.47%

AUSTRIAN, 3.40%

UK, 7.63%

ADB, 11.98%

WB, 16.28%

8

MEDIUMMEDIUM--TERM PUBLIC INVESTMENT PROGRAM TERM PUBLIC INVESTMENT PROGRAM FY 2011FY 2011--20162016

Department of Public Works and Highways

2011 2012 2013 2014 2015 2016 TotalHighways 100,230,959 124,483,387 143,433,951 163,740,272 190,304,959 218,624,591 1,022,688,511Flood Control 8,123,016 12,195,874 12,275,045 13,747,015 13,789,821 12,413,408 78,395,612Other Locally‐Funded 25,902,025 22,460,713 21,846,004 26,700,713 30,720,220 39,000,000 199,153,166Grand Total 134,256,000 159,139,974 177,555,000 204,188,000 234,815,000 270,038,000 1,300,237,289

The engineering and construction arm of the Government in charge of Planning, design, construction, and maintenance of national roads and bridges, and major flood control systems in support of the Medium-Term Philippine Development Plan(MTPDP).

MANDATE

ASSISTANT SECRETARYFOR TECHNICAL SERVICES 

(Raul C. Asis)

ASSISTANT SECRETARYFOR TECHNICAL SERVICES

(Dimas S. Soguilon)

ASSISTANT SECRETARY FOR 

SPECIAL PROJECTS(Emil K. Sadain)

ASSISTANT SECRETARY FOR 

ADMINISTRATION & I.T.(Bonifacio O. Seguit)

ASSISTANT SECRETARY FOR 

FINANCE & LEGAL AFFAIRS(Roy L. Manao)

ASSISTANT SECRETARY FOR 

PLANNING(Maria Catalina E. Cabral)

Bureau of 

Design

Chairman, 

COBAC for 

Consultancy

Bureau of 

Research 

and 

Standards

Chairman, 

Special 

BAC for NRIMP‐2

Bureau of 

Maintenance

Bureau of 

Construction

Central Procurement 

Office

SECRETARY(Rogelio L. Singson)

Bureau of 

Equipment

President’s 

Bridge 

Program 

Office

Region IV‐AAdministrative 

and 

Manpower 

Management 

ServiceMonitoring 

and 

Information 

serviceChairman, BAC 

for Goods

Chairman, 

Central 

Selection 

Board

Comptrollership 

and Financial 

Management 

Service

Legal Service

Chairman, Central 

Disposal 

Committee

Planning Service

Committee on 

Gender and 

Development

R-III

CARR-II

Region III

NCR

Region IV- A

Region V

Region VIII

Region XIII

Region I

Region IICAR

Region VII

Region IX

Region XI

Region XII

Region IV- B

Region VI

Region X

ARMM

DPWH Organization (Regional and District

Level)

16 Regional Offices

175 District Eng’g Offices

(11 DEOs)

(10 DEOs)

(9 DEOs)

(14 DEOs)

(9 DEOs)

(15 DEOs)

(14 DEOs)

(9 DEOs)(13 DEOs)

(14 DEOs)

(8 DEOs)

(13 DEOs)

(9 DEOs)

(12 DEOs)

(8 DEOs)

(7 DEOs)

16 Regional Offices 16 Regional Offices

53 District Engineering Offices (DEOs) Connected 53 District Engineering Offices (DEOs) Connected

Currently Connected Regional and District Offices thru

Wide Area Network (WAN)

122 DEOs to be connected 45 DEOs to be connected under WB NRIMP2

47 DEOs to be connected under ADB RSIP

30 DEOs to be connected under JICA REAPMP

17

HEAD OFFICELEGEND:

REGIONAL OFFICES

1st Tarlac ED2nd Tarlac SEDBataan EDBataan SED1st Bulacan ED2nd Bulacan EDAngeles City SED1st Pampanga ED2nd Pampanga ED1st N’va Ecija ED2nd N’va Ecija EDOlongapo City SEDZambales EDAurora ED

1st Cebu ED2nd Cebu ED3rd Cebu EDCebu City ED1st Bohol ED2nd Bohol ED3rd Bohol SED1st N’ros Oriental ED2nd N’ros Oriental ED3rd N’ros Oriental EDSiquijor ED

1ST Batangas ED2nd Batangas ED3rd Batangas EDBatangas SEDCavite EDCavite SED1st Laguna ED2nd Laguna EDLaguna SED1st Quezon ED2nd Quezon ED3rd Quezon EDQuezon SED1st Rizal ED2nd Rizal ED

DISTRICT OFFICES

1st Metro Manila ED2nd Metro Manila EDMalabon SEDSouth Manila EDNorth Manila ED1st Quezon City ED2nd Quezon City ED

NATIONAL CAPITAL REGION

REGION III

REGION VII

Batanes ED

VSAT

REGION IVA

1ST Camarines Sur ED2nd Camarines Sur ED

REGION V

RegionIVARegion IVBBRS, FS-PMO

South Cotabato ED

REGION XII

Other Offices

FS-PMOFocus BuildingBRSMPE-PMOIRROW-PMORoad Board

16 Regional 16 Regional Offices and 53 Offices and 53 Pilot District Pilot District Engineering Engineering Offices (DEOs) Offices (DEOs) Connected Connected

DPWH Communications NetworkDPWH Communications Network

18

HEAD OFFICELEGEND:

REGIONAL OFFICES

30 DEOs to be

connected to the

DPWH

Communications

Network under

JICA RUPP

Iloilo City EDIloilo 4th EDNegros Occ. 2nd EDBacolod City ED

Mindoro Occ. ED Satellite OfficePalawan 1st ED Satellite Office

DISTRICT OFFICES

Isabel 4th EDREGION II

REGION VI

REGION IVB

Masbate 2nd EDMasbate 2nd SED

REGION V

Misamis Occ. SEDCagayan de Oro City EDLanao del Norte 1st EDLanao del Norte 2nd EDREGION X

La Union 1st EDLa union 2nd EDPangasinan 1st EDPangasinan SED

REGION I

Cebu 5th EDREGION VII

REGION VIII

REGION IX

Zamboanga del Norte 3rd EDZamboanga del Sur 3rd EDIsabela City SED

REGION XIII

REGION XII

Gen. Santos City SED

Butuan City EDSurigao del Norte SEDSurigao del Sur 2nd ED

Biliran EDLeyte 1st EDNorthern Samar 2nd EDSamar 1st EDTacloban City SED

In 1997, the DPWH began a major reform effort to improve the quality and delivery of its services through business processes improvements. Under the Highway Management Program (HMP), the Government of the Philippines (GOP) obtained financing from the World Bank (WB) for institutional development and road works. Included in the institutional development was the development and installation of a comprehensive Road Information and Management Support System (RIMSS) in the DPWH.

Reforms through Information Technology

One of the major achievements of the RIMSS project was in the area of data integration and centralized data storage and the establishment of the DPWH Communications Network that connected all the 16 Regional Offices and 53 pilot District Engineering Offices of the Department. The establishment of the IT infrastructure paved the way for the development of various application systems and of the intranet and internet websites.

Reforms through Information Technology

Data IntegrationData IntegrationRoad and Bridge Information Application (RBIA) and its Uses

14

INPUTS DATABASES USERS

Road

Inventory

Right ofWay Video

Manual / Semi-

Automated

data

Automated

Data

Bridge Inspections

ROAD CONDITION (roughness)

ROAD INVENTORY

ROAD CONDITION

(visual)BRIDGE

INVENTORY

BRIDGE CONDITION

TRAFFIC DATA

Network Definition

Road Names, Road Sections, LRPs, Nodes

PMS/HDM-4 (DPD, PS) Pavement Mngt. System/

Highway Dev’t. & Mngt tool

BMS (DPD, PS)Bridge Management System

MYPS (DPD, PD, PS)Multi Year Programming and

Scheduling Application

RMMS (BOM)Routine Maintenance & Management System

General Road Network Information Reporting for

Planning Purposes

Other Users

Base Mapping, GPS Surveys

GIS

RBIA

REPUBLIC ACT No. 9184 and its REVISED IMPLEMENTING RULES AND REGULATIONS 

› used by All  Government Agencies, Government  Owned and Controlled Corporations, Local 

Government  Units

› For Foreign Assisted Projects (FAPs under National  Competitive Bidding (NCB)

30

Civil Works ConsultancyServices

Presidential Decree No. 1594

Approved: 06-11-78IRR (last amended):07-05-00

Goods

Executive Order No. 40

Effectivity: 01-08-02IRR : - 04-04-02

Republic Act 9184

Approved:01-10-03IRR-A: 10-08-03

Rev. IRR: 09-02-09

NEDA Guidelines Executive Order

1.EO No. 302, s. 19962.EO No. 201, s. 20003.EO No. 262, s. 2000

Procurement Laws/Guidelines(For Locally Funded Projects)

Pre-ProcurementConference

Advertisement/Posting

FinancialDocuments

Pre-BidConference

Envelope # 1 Evaluation &

Ranking

not more than 7 c.d. > P50M

not more than 5 c.d. for ABCs P50M and below

Post-qualification Award ofContract

Bid submission

Procedural Steps for Procedural Steps for Procurement of InfraProcurement of Infra

Envelope # 2

Issuance ofBid Documents

TechnicalDocuments

IncludingEligibility

Requirements

Eligibility is done using the Registry.Eligibility is done using the Registry.

Appropriate internal controls are in place.Appropriate internal controls are in place.

Allows new applications for registration anytimeAllows new applications for registration anytime

Strike rules incorporated into the system.Strike rules incorporated into the system.

ProcedureOne time submission of documents to register and One time submission of documents to register and update information at any time.update information at any time.

Submission of letter of intent for a project until the Submission of letter of intent for a project until the deadline of submission of bids deadline of submission of bids

Contractor information is verified against the Contract Contractor information is verified against the Contract Profile.Profile.

Policy

Civil Works Registry Advantages

• From Contractor’s Perspective:Forms are simplifiedForms are submitted one time annually but can be updated at anytimeNo more submission of voluminous documents to express interest on a projectCan obtain report stating reason/s for ineligibility

From Department’s Perspective:Saves time and resourcesProvides transparent and objective validation Only technically and financially capable firms are able to submit bids

APPENDIX 3GUIDELINES IN THE DETERMINATION OF ELIGIBILITY OF FOREIGN SUPPLIERS,

CONTRACTORS, AND CONSULTANTS TO PARTICIPATE IN GOVERNMENT PROCUREMENT PROJECTS

1. GENERAL POLICYIn line with the economic policies enunciated in the Constitution, particularly on the promotion of Filipino labor, domestic materials, and locally produced goods, Republic Act No. 9184, in consonance with Republic Act No. 5183, adopts as general principle the preference for Filipino nationals in the award of Government’s procurement contracts.However, in light of the principles of economic exchange and expansion of trade and exports with other countries on the basis of equality and reciprocity, with due regard to the government’s initiatives in the prohibition and/or regulation of monopolies and other situations that restrain trade and fair competition, qualified foreign nationals may be eligible to participate in the public procurement of goods, infrastructure projects and consultancy services; provided, however, that provision on domestic preference, Most-Favored Nation (MFN) status and non- discrimination treatments under applicable laws and treaties are complied with.

2. SCOPE, APPLICATION AND PURPOSEThese guidelines shall govern procurement of goods, infrastructure projects, and consulting services by all Departments, Bureaus, Offices and Agencies of the National Government, Government-Owned and/or Controlled Corporations, Government Financing Institutions, State Universities and Colleges, and Local Government Units and are formulated to clarify procurement policy on the eligibility of foreign bidders to participate in domestically-funded public procurement opportunities, within the framework of national and international economic and trade policies.

3. DEFINITION OF TERMSFor purposes of these guidelines, the following terms or words and phrases shall be defined as follows:3.1. Foreign Consultant refers to an individual, sole proprietorship, partnership, corporation or joint venture as defined in Section

24.1(2) of the IRR-A of R.A. 9184.3.2. Foreign Contractor refers to a citizen of a foreign country or an entity where Filipino ownership or interest is less than seventy five

percent (75%) offering infrastructure related services other than consulting services.

Republic Act No. 9184

3.3. Foreign Supplier refers to a citizen of a foreign country or an entity where Filipino ownership or interest is less than sixty percent (60%)who is engaged in the manufacture or sale of the merchandise or performance of the general services covered by his bid.

3.4. Local Consultant refers to an individual, sole proprietorship, partnership, corporation or joint venture satisfying the definition of a consultant under the IRR-A of R.A. 9184 and complying with the relevant requirements therein.

3.5. Local Contractor refers to a Filipino citizen or sole proprietorship; or partnership duly organized under the laws of the Philippines and of which at least seventy-five percent (75%) of the interest belongs to the citizens of the Philippines; or a corporation duly organized under the laws of the Philippines, and of which at least seventy-five percent (75%) of the outstanding capital stock belongs to citizens of the Philippines, duly licensed under Philippine laws to undertake infrastructure activities in the Philippines.

3.6. Local Supplier refers to any citizen of the Philippines, or any corporate body or commercial company duly organized and registered under the laws of the Philippines where Filipino ownership or interest is at least sixty percent (60%), habitually established in business and engaged in the manufacture or sale of the merchandise or performance of the general services covered by his bid.

4. FOREIGN SUPPLIERS, CONTRACTORS, AND CONSULTANTS ELIGIBLE TO PARTICIPATE4.1. In the procurement of goods, regardless of the procurement method used, foreign bidders may be eligible to participate

under any of the following circumstances:4.1.1. When the goods sought to be procured are not available from local suppliers, subject to Item 5 herein; or4.1.2. When there is a need to prevent situations that defeat competition or restrain trade, subject to Item 6 herein; or 4.1.3. When the foreign supplier, manufacturer and/or distributor is a citizen, corporation or association of a country the

laws or regulations of which grant reciprocal rights or privileges to citizens, corporations or associations of the Philippines, irrespective of the availability of goods from local suppliers; or

4.1.4. When provided for under any treaty or international or executive agreement.

4.2. In the procurement of infrastructure projects, foreign contractors may be eligible to participate in the bidding if they form a joint venture with local contractors; provided that their interest in or ownership of the joint venture shall not exceed twenty-five percent (25%). However, where the structures to be built require the application of techniques and/or technologies which are not adequately possessed by a person/entity which meets the seventy-five percent (75%) under Section 23.11.2 of the IRR-A, they may be eligible to participate in the bidding.

4.3. In the procurement of consulting services, foreign consultants may be hired if local consultants do not have the sufficient expertise, capability, and capacity to render the services required under the project, as determined by the head of the procuring entity.

N e x t

5. GOODS ARE NOT AVAILABLE FROM LOCAL SUPPLIERS5.1. In the procurement of goods not available from Local Suppliers, the procuring entity may invite foreign suppliers,

manufacturers and/or distributors to participate in the procurement process.5.2. For purposes of these guidelines, goods are not available from Local Suppliers when, at any time before advertisement

for their procurement, it is determined that no Local Supplier is capable to supply the required goods to the Government, in which case, foreign suppliers, manufacturers and/or distributors may be invited to participate in the bidding. Therefore, the read of the procuring entity or his duly authorized representative shall certify that, after diligent market research conducted by the procuring entity, the goods sought to be procured are not available from Local Suppliers. In addition, when applicable, the procuring entity shall secure a certification from the appropriate Government regulatory body, such as, but not limited to, the Bureau of Product Standards of the Department of Trade and Industry (DTI) for electrical products, mechanical/building & construction materials, chemicals, foods and other consumer products, and the Bureau of Food and Drugs of the Department of Health (DOH) for drugs, medicine, and other rated medical devices, that based on its available records, the goods sought to be procured are not available from Local Suppliers.

5.3. If despite the availability of the goods sought to be procured, no local supplier is interested to participate in the procurement process, the head of the procuring entity shall certify that it has advertised the same for public bidding and shall make a statement that no local supplier participated in the bidding and that the same is due to reasons not attributable to the procuring entity.

5.4. In the case mentioned in Item 5.3, for purposes of inviting foreign suppliers, the bidding requirements and conditions, as advertised, shall not be modified or changed. Otherwise, modifications and/or changes in the requirements and conditions of the bidding shall disallow the procuring entity to resort to invitation of foreign bidders.

5.5. The procurement of unavailable goods must be through competitive or public bidding unless conditions prescribed under R.A. 9184 and its IRR-A warrant resort to alternative methods of procurement.

6. THERE IS NEED TO PREVENT SITUATIONS THAT DEFEAT COMPETITION OR RESTRAIN TRADE6.1. In cases where the procuring entity intends to procure goods from an exclusive local manufacturer, supplier, distributor,

or dealer through direct contracting under Section 50 (c) of the IRR-A, when said method is recommended by the BAC and approved by the Head of the Procuring Entity, and reflected in the approved Annual Procurement Plan, it shall, before commencing any negotiations with a local supplier, post through the website of the procuring entity, if any, and in the Philippine Government Electronic Procurement System (PhilGEPS), an invitation to foreign manufacturers to submit a manifestation of its intention to participate. Should any foreign manufacturer submit such manifestation of its intention to participate. Should any foreign manufacturer submit such manifestation within the period prescribed in the invitation, the procuring entity shall commence the conduct of public bidding.I f no foreign manufacturer submits such manifestation within the said period, the procuring entity may proceed with the intended procurement through direct contracting with the said exclusive local manufacturer, supplier, distributor, or dealer.

N e x t

7. RECIPROCITY RULE IN THE PROCUREMENT OF GOODS7.1 In the procurement of goods. A supplier, manufacturer and/or distributor who is a citizen, corporation or association of a

country whose laws or regulations, grant reciprocal rights or privileges allowing Filipino nationals to participate in public procurement in their country, are allowed to participate in government procurement projects.

7.2 The procuring entity shall confirm from the list of countries, maintained by the Department of Foreign Affairs (DFA) and as shown in the GPPB website, with which the Philippines enjoys reciprocal rights on matters of eligibility of its nationals in public procurement abroad. If the country of the prospective foreign is not in the list, the procuring entity shall require from the said bidder the submission of a sworn statement that the country of which he is a citizen or in which the corporation or partnership is organized and registered grants reciprocal rights or privileges to Filipino citizens, corporations or associations, citing its country’s relevant laws.

7.3 The sworn statements mentioned above shall be validated during post-qualification of bidders.

8. EFFECTIVITYThese Guidelines or any amendments hereto shall take effect fifteen (15) days after publication in the Official Gazette or in a news paper of general nationwide circulation and upon filing with the University of the Philippines Law Center of three (3) certified copies of these guidelines.

Domo Arigato Gozaimasu!